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02/04: 2013 Spring Tea Trip, Part I

Hello, Kunming, here I come. My trip took a total 21 hours from Detriot to Beijing, and then Kunming.

I got off the phone with my tea buddies quickly.

The first phone call were both happy, and exciting. He told me that 2013 Spring harvest was going to be a blast, tea leaves had been grown nicely in Yiwu area, contrast to my worries on the drought condition in Yunnan. Well, he was a tea farmer in Yiwu area.

The second phone call were disbelieving and disappointing. One of my friends, a tea merchant alerted me that ' it's a 2007 all over again' - Pu-erh tea bubble year. He had been in Xishuangbanna for 3 weeks now, bought nothing and watched the market with a sad view.

In the past, I was complaining US Federal's QM policies had made Green Buck a worthless paper. Now if you know Chinese printed 3 times more currencies to inflat the market! In comparison, RMB (Chinese currency) droped its purchasing power 2/3 in a period of 6 years. In China, the interests rate is way behind the double digit inflation rate, the stock market is melting down like there is no tomorrow. So, people flee into real estates, arts and other categories to reserve their money. Unfortunately, our beloved Pu-erh tea was falled into this money saving category.

We will see what happens in the next few weeks ...

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